Uranium aluminide predominated with UAl2 phase was prepared by arc-melting procedures and comminuted to required particle size. UAl2 and Al powders were blended and compacted to achieve LEU fuel density of 2.17 g/cm3. The picture-frame technique was used to clad the dispersions (UAl2-Al) with aluminum. A few target plates were fabricated by thermo-mechanical processing (hot rolling and annealing) of UAl2-Al matrix contained in roll billet of Al. The fabricated plates were characterized by destructive and some of non-destructive testing techniques and then annealed to achieve required phase of uranium aluminide for proper dissolution in basic media.